Business Aims & Objectives

Business Aims and Objectives

Aims- the strategic goals of a business; for example to grow and expand the business

Objectives - specific steps; for example to increase market share by 5% over the next year

Multiple Choice

Aims are more general where as objectives are specific

• True

• False

Objectives for a start up

The objectives for a start up business can be split into financial (measured in monetary terms) and non-financial objectives

Financial Objectives (Start up business)

• Survival- surviving the first year in order to build a customer base.

• Profit- Maximise profit by increasing revenues and decreasing costs

• Sales- increase sales to encourage customers to repeat buy.

• Market Share – increase market share, take business from competitors. Could be via heavy promotion.

• Financial Security- for the entrepreneur as they may have given up their job. This means they will have bills etc. to pay which means the business must make money.

Non- Financial Objectives (Start up business)

-Social Objectives- some businesses trade for social or environmental purposes.

-Personal Satisfaction- a business owner may simply have wanted to gain personal satisfaction from owning their own business

-Challenge- Entrepreneurs may start a business and view it as a challenge

-Independence- An entrepreneur may want complete freedom and may not want to work for someone else

-Control - Entrepreneurs may want more control over their own working lives.

Multiple Choice

The main objective for all entrepreneurs is to make a profit

• True

• False

Multiple Choice

The aims and objectives of firms will change over time.

• True

• False

Multiple Select

Which of the following are financial objectives?

• Market Share

• Survival

• Helping those in need

• Independence

Multiple Choice

New businesses focus on survival because more than half fail within 5 years

• True

• False

Why are aims and objectives different between difference businesses?

• Businesses which are not run by the government are in the private sector

• Public sector business are run by the government

Types of organisation

• Private sector

• Public Sector

Private Sector

• Businesses which are not run by the government are the private sector

• Their objectives are likely to be:

  - Maximise profits by increasing sales and reducing costs

  - Increase market share

  - Expand the business

Public Sector

• Run by the government

• Their objectives are to

• -Deliver a service to the public

• -Keep costs low

• -Meet targets

Multiple Select

Which of the following are in the public sector?

• Allerton Library

• Lifestyles

• Arriva PLC

• Tesco

Multiple Choice

Public Limited Companies are in the public sector

• True

• False

Multiple Choice

All entrepreneurs focus on profit as their main objective

• True

• False

Multiple Choice

Objectives of firms change as they grow.

• True

• False